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Sea’s $16 Billion Crash Signals Trouble Beyond India Shutout

  • Investors fear Sea’s other big app, Shopee, could be next
  • Tencent-backed company contending also with Alibaba, rivals
Forrest Li
Forrest LiPhotographer: Wei Leng Tay/Bloomberg
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Sea Ltd. lost more than $16 billion of value in its biggest daily market drop after India abruptly banned its most popular mobile gaming title. Investors are growing concerned the ban may just be the start of the company’s troubles.

Singapore-based Sea went public in 2017 and quickly became the most valuable company in Southeast Asia, based on its potential to expand its offering of gaming, e-commerce and financial services beyond its home turf. New Delhi’s decision to ban Free Fire -- a lucrative title for the company -- highlighted Sea’s challenges from geopolitical tensions as well as mounting competition from rivals like Alibaba Group Holding Ltd.’s Lazada.